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EXPERIENCED
EXPERT WITNESS TESTIMONY
TFC can bring the value of extensive industry experience to bear on your next
utility finance problem. You will benefit from increased but temporary staff. TFC can improve your own staff’s skills
in the area of utility finance including cost of equity estimation and multiple discriminant analysis.
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OUTCOME
HANDICAPPING FOR HEDGE FUNDS Evaluation of rate case outcomes
that affect cash flow and stock value. TFC has an excellent track record of calling Arizona Corporation Commission decisions.
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COST
OF CAPITAL TESTIMONY
1. Cost of equity analysis has become an increasingly complex field. TFC offers the
very best in analytical techniques that are defensible and can more accurately estimate the cost of equity to a utility. The
field has become multi-disciplinary, including skills in finance, accounting, economics, statistics, econometrics, and mathematics.
TFC can augment your staff in these critical skills to prosecute a case successfully. TFC has multiple files, data sources,
and experience in the witness box.
2. Cost of debt analysis also brings its own complications. The RBOCs had attempted
to use the net-book-balance method to set their cost of debt. An expert witness trained in finance and mathematics could explain
the problems inherent in the method which lead to higher rates than were appropriate.
3. Capital structure requires
an increasing degree of experience and analysis. A historical test period capital structure can actually harm a utility and
can be inconsistent with financial health going forward. Debt at the holding company level can also affect an appropriate
rate of return.
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RATES
Clients are customarily billed on time and expenses (no markups on expenses). The standard hourly rate is $155
per hour but can vay by project. Hearings are billed in full day increments, travel is billed at 1/4 to 1/2 actual travel
time. TFC is concerned with creating value for clients and is sensitive
to taking on the most cost-effective issues in a case and maximizing your return.
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MERGER
& ACQUISITION ASSISTANCE
Mergers and acquisitions are complex and subject to increasing scrutiny. TFC
has experience in analyzing the public interest and developing ring fencing procedures, including those that kept PGE out
of the Enron bankruptcy. TFC also has experience with mergers between domestic utilities and foreign purchases of domestic
utilities. Mergers and acquisitions are becoming increasingly complex and require increased scrutiny. Bring some experienced
consultation to bear on your next merger case to generate a better outcome for all parties.
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TRAINING
SEMINARS FOR EXPERT WITNESSES TFC offers seminars in expert
witness testimony for your staff so that you can develop or improve internal skills to present cases independently. TFC has
logged many hours on the witness stand and has the training and experience needed to coach your staff to be independently
successful.
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| John leading seminars at the 2010 Institue for Public Utilities forum, Michigan State University |
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